Southwest cuts revenue outlook despite booming demand, blames 'booking patterns'

, said Wednesday that a key revenue ratio will be weaker than expected because of changes in how consumers book travel.However, Southwest said, revenue for each seat flown one mile — a closely watched measure of pricing power — will fall by 4% to 4.5% compared with the same quarter last year.Costs per mile will rise by 6.5% to 7.5% compared with a year ago, said the airline, which is dealing with rising labor costs.

The Dallas-based airline said the revenue per mile outlook is worsening mostly due to the difficulty of adapting its pricing to “current booking patterns in this dynamic environment.”Airlines expect a record number of passengers this summer, but they have undercut their pricing power by adding more flights and seats.Uber locking out NYC drivers to avoid paying them for 'idle time'

Delta launches its most luxurious lounge ever at JFK, with fine dining, massages and showers at massive 'Sky Club'and former CEO and current Chairman Gary Kelly, saying they had failed to modernize the airline’s technology and strategy to keep up with changes in travel.

Travel Air Travel Airlines Southwest Airlines

United States Latest News, United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Southwest Airlines says a key measure of pricing power will be weaker than expected in 2QSouthwest Airlines says a key revenue ratio will be weaker than expected in the second quarter because of changes in how consumers book travel. That's not good news for Southwest, which is already under pressure from a hedge fund to make big changes, including getting rid of the CEO.
Source: AP - 🏆 728. / 51 Read more »

Southwest Airlines says a key measure of pricing power will be weaker than expected in 2QSouthwest Airlines says a key revenue ratio will be weaker than expected in the second quarter because of changes in how consumers book travel.
Source: wjxt4 - 🏆 246. / 63 Read more »

Heat advisory affecting Southwest Alabama until Wednesday eveningThe National Weather Service issued a heat advisory at 2:20 a.m. on Wednesday valid for Wednesday between 11 a.m. and 7 p.m. for Choctaw, Washington, Escambia, Mobile and Baldwin counties.
Source: aldotcom - 🏆 82. / 68 Read more »

Southwest Airlines says a key measure of pricing power will be weaker than expected in 2QSouthwest Airlines says a key revenue ratio will be weaker than expected in the second quarter because of changes in how consumers book travel.
Source: ksatnews - 🏆 442. / 53 Read more »

FedEx, Rivian, Whirlpool rise premarket; Southwest Airlines, Chipotle fallFedEx, Rivian, Whirlpool rise premarket; Southwest Airlines, Chipotle fall
Source: Investingcom - 🏆 450. / 53 Read more »

Southwest Airlines cuts revenue forecastThe company said it still expects record quarterly operating revenue in the second quarter.
Source: NBCDFW - 🏆 288. / 63 Read more »